Rational for removal:
This is effectively a fatal error to miners regardless, there is no meaningful downside to removing this because getting an invalid template is not practically any worse than getting no template.
Due to cs_main locks this causes a large variance in GBT response times and further encourages undesirable workarounds such as validationless mining.
Invalid blocks are much more likely to originate from stratum server bugs, something like this is probably a better way to test block validity.
I've been running with this TestBlockValidity call removed in production for a few months at this point.